Daley Discloses Investments, $8.7 Million in JPMorgan Income

By John McCormick and Mike Dorning -
Feb 19, 2011

William Daley, President Barack Obama’s chief of staff, held investments including stocks and
cash accounts worth between $7.3 million and $49.7 million,
according to federal disclosure forms released by the White
House.

The 43-page document also shows Daley, 62, received $8.7
million in salary and stock and cash bonuses in 2010 and the
first week of 2011 while working at JPMorgan Chase & Co., where
he was Midwest chairman and head of corporate responsibility
before becoming Obama’s top aide in January.

Shares of Apple Inc., Google Inc. and Abbott Laboratories
are among the assets listed by Daley. Some of the assets are in
trusts, including one under his name and one under that of his
second wife, Bernadette Keller. The disclosure, released
yesterday, gives values only in broad ranges, making it
impossible to determine exact figures for some holdings.

Daley also cashed out a non-qualified pension plan at
JPMorgan as a lump sum, valued at $6.6 million, the disclosure
shows.

The totals paid by the bank in 2010 and 2011 includes
$675,000 in salary for 2010 and $3.1 million in cash and stock
bonuses for 2009, as well as $6,761 for one week of service in
2011 and $4.8 million in cash bonus for 2010, paid in 2011.

Like all top federal executives, judges and members of
Congress, Daley must disclose assets, liabilities and
memberships on boards to comply with conflict-of-interest rules
created by a 1974 ethics law.

Selling Shares

Daley has divested of JPMorgan shares he accumulated while
at the bank under the rules, which prohibit him from holding a
specific equity unless he seeks a waiver. He filed a notice with
the Securities and Exchange Commission in January on the sale of
186,190 shares of JPMorgan.

Daley can defer the payment of capital gains taxes on his
sale of almost $8.3 million in shares under the law, which
allows people forced to sell assets when they accept government
jobs to reinvest the proceeds and delay capital gains liability
until the new investments are sold.

Daley’s last day at JPMorgan was Jan. 7. He resigned from
the boards of Boeing Co. and Abbott Laboratories the same day.
He will recuse himself from any White House matters involving
those companies for two years.

His background in business and finance -- he joined New
York-based JPMorgan, the second-biggest U.S. bank by assets, in
2004 -- was among the reasons Obama picked him for the job as
the president seeks to reach out to the business community in
the second half of his term.

Daley is the youngest son of the late Richard J. Daley who
served more than 21 years as Chicago’s mayor, and the brother of
the current mayor, Richard M. Daley.

He was President Bill Clinton’s commerce secretary from
January 1997 to June 2000. He served as president of SBC
Communications Inc., now AT&T Inc., for more than two years
before moving to JPMorgan.